How to Start a Courier Business?

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Hello business peeps! Does the aggressive growth and profits of on-demand services enthuse you? Then this guide is here for you to detail on the on-demand courier services business. Firstly, know the hot stats regarding the on-demand courier services industry. After that, we will walk through the courier services app development and much more.

Statistical analysis on on-demand courier services

 With the changing global economic conditions, businesses have to adapt themselves accordingly. So, it’s time for traditional courier services businesses to upgrade and provide on-demand services.

  • Generally, the market size of any industry is measured by its revenue. Here, the revenue of on-demand courier services will be $346.8 billion in 2021.
  • Researchers and analysts have observed that courier delivery services have grown by 2.6% from 2016-2021.
  • Same-day and next-day are the two delivery services in the courier business. The same-day delivery services are expected to reach 15.6 billion USD by 2024.
  • Of all, the global courier services industry is ranked 3rd as of 2021.

Business models applicable for on-demand courier delivery services

Generally, on-demand courier delivery services are broadly classified into multiple models. So, the courier delivery business is not a narrow one and has a vast set of opportunities. Read more to know the number of business models.

●     Same-day delivery service

Globally, people prefer same-day delivery services regardless of the products. Generally, same-day delivery services are possible in the case of food/grocery delivery. But courier delivery companies have also started supporting same-day deliveries. Just above this section, we saw the stats regarding the same-day courier delivery. Some courier service businesses are even available 24×7 for accepting bookings.

●     Next-day delivery service

 Amazon Prime is a perfect example of next-day delivery. The next day delivery services are preferred by a larger audience as they can procure products the very next day. Any kind of facility that pulls the attention of users, then there will be competitors who provide the same. There are already big players in the courier service industry that are well-versed in next-day delivery services.

Hence, before choosing any business model, analyze the number of competitors. If you do so, you can come up with something different and appealing to users.

●     Specialist courier delivery service

 From the name, it is obvious that this type of service is employed for particular products. For example, transportation of medicines or other healthcare products needs sheer attention. From dispatch to delivery, each stage has its own set of challenges. For delivering such types of products, you must employ trained delivery drivers. Also, the courier services app must be able to provide a tracking facility to know about the location of products.

Here is a list of products or goods that come under the specialist delivery service. Medicinal products, hazardous products, and fragile products.

●     Eco-friendly delivery service

 Courier delivery services have been identified as one of the major contributors to pollution. The vehicles employed for courier delivery emit harmful gases, which we all know. So, in view of cutting down the pollution levels, you can choose eco-friendly vehicles.

Electric bikes and motorcycles will be the best alternative. Additionally, drivers can surpass other vehicles without maneuver if they utilize e-scooters.

Another smart delivery option and eco-friendly one is delivery via drones. For providing delivery services through drones, you need the local government’s permission. In the US, drone delivery services are in operation. Whereas in the UK, government regulations don’t permit drone delivery as of now. However, in the future, they may give permission.

Therefore, choosing the type of vehicle for business operation is also necessary.

Cost metrics pinned with courier delivery business

 To start a courier delivery business, you must invest in certain areas. Let us see the metrics embedded more in detail.

●     Vehicles

 Firstly, decide whether you are about to choose vans, trucks or e-scooters for deliveries. Because based on the model of the vehicle and the capacity, the cost will vary. Here, you have to note down a crucial point. If you have planned to run your courier delivery business in partnership with delivery companies, you don’t have to worry about vehicles.

The partnered companies are responsible for that. In contrast, if you are planning to operate your business independently, then invest in vehicles.

●     Equipment

 Apart from the vehicle, delivery drivers need to be equipped with certain things. They are phone mount, uniform, panniers, bags, and helmets. Again, you need not worry about purchasing equipment if you partner with service providers.

●     Recruiting couriers

 You need to recruit couriers or delivery drivers if you run your business individually. Where will you source the couriers from? What are the skills to look into each courier? Here is all you need to grasp.

  • You can find them at freelance sites or professional networking platforms like LinkedIn.
  • Or hire couriers from agencies on a contract basis.
  • Your couriers must be well-trained in driving based on the vehicle you employ.
  • Couriers must possess the ability to use advanced mobile apps.
  • Out of all, they must be punctual and polite while handling customers.

●     Insurance

 You must deposit a sum as a backup in the case of unexpected situations like accidents, thefts, etc. So, taking insurance is the proven way to compensate for any losses. Your insurance plan must cover couriers, vehicles as well as equipment.

That’s all with the cost metrics involved in the courier delivery services business.

Courier services app development solution

 The best of all app development solutions for on-demand businesses is the robust Gojek clone. It is a popular solution for on-demand app development for its ready-made availability. Moreover, as per your courier business needs, you can seamlessly customize the app.

Features of a courier services app

 Real-time location tracker

  • In-app messenger
  • Route optimizer
  • Cost estimator
  • Push notifications
  • Admin dashboard, etc.

Summing up, before you leap into the on-demand courier delivery business, take time to examine immediate rivalries. Also, to launch a courier delivery app, you can choose developers who provide pre-made app solutions like Gojek clone. Because they are time-saving as well as effective. Alright! Good luck! 

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